CG63950 | BADR : Introduction and legislation

The content in this manual covers a much higher level of detail compared to say a Helpsheet supporting the Self Assessmnent Tax Return. If you are looking for an introduction to the main rules for the relief for a particular year please see the Business Asset Disposal Relief (Self Assessment helpsheet HS275) on GOV.UK and select the year you are considering.

Entrepreneurs’ Relief was renamed in Finance Act 2020 with effect from 6 April 2020. The new name is generally used in this guidance but should be read as applying to times before that date.

Finance Act 2008 introduced Entrepreneurs’ Relief for gains arising from a material disposal of business assets by individuals and the trustees of certain settlements and disposals of other business assets associated with a material disposal of business assets where certain conditions are met.

The relief was first announced in January 2008 with draft legislation being published shortly after.

Entrepreneurs’ Relief was introduced by FA2008/S7 and Sch3 which inserted the provisions into TCGA 1992 from S169H to S169S. FA2008/Sch3/paragraph5 contains the commencement provisions for Entrepreneurs’ Relief. It applies to disposals made on or after 6 April 2008.

There have been a number of changes affecting the rules since 2008. Care should therefore be taken to consider the rules as they applied at the date of any relevant disposal.

A general overview of the structure of the guidance and provisions is in the table below.

For convenience the statutory references in TCGA92 are used throughout this guidance. They cover the following areas.